Bankruptcy Appellate Panel for the Eighth Circuit
457 F.3d 898 (2006)
The CIT Group/Equipment Financing, Inc. (CIT) (creditor) leased equipment to Fehrs Nebraska Tractor & Equipment Co. (Fehrs). CIT had certificated the equipment and retained possession of the certificates of title. Before the lease expired, Fehrs sold the equipment to M & S Grading, Inc. (M&S Grading) (debtor). Fehrs then went out of business. Later, M&S Grading filed for bankruptcy and included the equipment as part of the bankruptcy estate. CIT sued M&S Grading to recover the equipment. The bankruptcy court relied on Uniform Commercial Code (UCC) § 2A-305(3), a section governing the sale of leased goods by an existing lessee. Under UCC § 2A-305(3), the bankruptcy court found that Fehrs did not have title to these certificated goods and, therefore, could not transfer title to M&S Grading. Thus, CIT still owned the equipment. M&S Grading appealed, arguing that an analogous sales section of the UCC did not require a buyer in the ordinary course to obtain a certificate of title to get title to certificated goods, and the lease section should be read the same way.
Rule of Law
Holding and Reasoning (Venters, J.)
What to do next…
Unlock this case brief with a free (no-commitment) trial membership of Quimbee.
You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 97,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.
Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.
Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.
Here's why 220,000 law students have relied on our case briefs:
- Written by law professors and practitioners, not other law students. 14,100 briefs, keyed to 189 casebooks. Top-notch customer support.
- The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
- Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
- Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.